National Broadband Network To Cost An Extra $15 Billion

Those who were hoping Australia would soon catch up to the rest of the world’s internet speeds with the National Broadband Network are in for a shock.

The company behind rolling out the NBN today announced their updated costs of the nation’s first ever fibre-based internet network. Instead of the initial $41 billion, the network has seen a blow out and will now cost somewhere in the region of $46 billion and $56 billion.

The reason for this $5 billion – $15 billion deficit? The NBN Co. says that it is simply taking into account the vast changes in technology over time and the potential delays in deployment over the coming years.

It’s not all gloomy news though, with the Government’s equity cap putting a halt to public spending on the program. The May federal budget stipulates that the NBN Co. will need to seek private funding to fund part of its roll out, pegging public investment at $29.5 billion.

This means that the NBN program will soon be door knocking banks and other major institutions for a dose of cash injection. And as expected, Communications Minister Malcolm Turnbull has pointed the finger squarely at Labor’s incompetency for the current NBN situation.